Business to invest in NSW 'social scheme'

Making the transition from jail to the outside world will be made easier for thousands of NSW prisoners under an Australian-first privately sponsored scheme aimed at reducing reoffending.

The rehab program will be available for close to 4000 parolees over the next five years, and includes intense one-on-one support to help them reintegrate back into the society.

National Australia Bank and not-for-profit business Australian Community Support Organisation have signed up as investors for the program as part of the state government's new Social Impact Investment scheme.

It's hoped the program will help the state government stick to its commitment to reduce reoffending rates by five per cent by 2019, Corrections Service Minister David Elliot said on Tuesday.

Treasurer Gladys Berejiklian said NSW was leading the way when it came to social impact investment.

"It allows us to address serious challenges facing our community while harnessing the expertise of the not-for-profit sector, as well as financial support from private investors," she said.

Investors linked to the program will receive financial returns based on the percentage reduction in reincarnation for parolees referred to the service in the year after their release.